Regional Business Cycle Phases in Japan
FRB of St. Louis Working Paper No. 2006-053A
33 Pages Posted: 20 Sep 2006
Date Written: September 2006
This paper uses a Markov-switching model with structural breaks to characterize and compare regional business cycles in Japan for 1976-2005. An early 1990s structural break meant a reduction in national and regional growth rates in expansion and recession, usually resulting in an increase in the spread between the two phases. Although recessions tended to be experienced across a majority of regions throughout the sample period, the occurrence and lengths of recessions at the regional level have increased over time.
Keywords: Markov-switching, regional business cycles, Japan
JEL Classification: E32, R12
Suggested Citation: Suggested Citation